Issuance of Purchase Confirmation when goods are delivered domestically at the request of an overseas client

Question

We purchase raw materials from a domestic supplier and sell them to an overseas client. We would like to inquire whether it is possible to issue a Purchase Confirmation (구매확인서) in a case where, at the request of the overseas client, the goods are delivered to a designated location within Korea. The payment flow is A (domestic raw material supplier) ← Our Company ← B (overseas client), and the logistics flow is A (domestic raw material supplier) → Our Company → C (a domestic processing plant commissioned by B) → Export. C is a service processing contractor for B, and all products manufactured at C are scheduled to be exported through B, with all transactions conducted in USD. Since B is an overseas company, they cannot issue a Purchase Confirmation to us. In this case, we would like to know if we can issue a Purchase Confirmation to supplier A using supporting documents that prove foreign exchange earnings (such as POs, contracts, etc.).

tflow_expert · Answer

Since a Purchase Confirmation is a document applied for and issued by a party intending to purchase raw materials or components for the purpose of earning foreign exchange, we believe that if the earning of foreign exchange and the export of goods are verified through your company's contracts or other supporting documents, you can issue a Purchase Confirmation to Company A based on those contracts.

Issuance of Purchase Confirmation when goods are delivered domestically at the request of an overseas client

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